Rate of Capital Gain
RS Dudani
(Querist) 22 November 2010
This query is : Resolved
In 1985, I had purchased a house from DDA at a cost of Rs. 1.5 lakhs. I sold the House in 2010 (September) for Rs. 31.00 Lakhs. My querry is :
(i) What will be the Capital Gain and how much Tax, I have to pay ?
(ii) When is the tax payable - immediately or with the IT Return in 2011 ?
(iii) If I invest the amount and purchase another house, do I still have to pay the Capital Gain Tax ?
Thanks for advice
RS Dudani
A V Vishal
(Expert) 22 November 2010
Indexed Cost Of Acquistion: Rs.853200 (Assuming acquistion is during FY 1984-85)
Capital gains: Rs.22,46,800.
>The capital gains computed as above should be invested in a property within 2 years or if it is utilized for construction of a house then within 3 year. The amount if not utilized completely during the current fin year must be deposited in capital gains account scheme and utilized completely within the stipulated time else it will attract tax to the extent it remains un utilized.
> The capital gains can also be invested in REC/NHAI bonds for a period of 3 years.
ajraval
(Expert) 23 November 2010
I agree with Vishal but investing the sum in Rural Electrical (RECL) is four years bonds, during which they send annual interest at 5.9 also.
RECL is much more reliable and efficient.
